I'd be interested in real numbers about how much $ they predict they are losing out on and how much they are actually losing out on. You also have to wonder how many people have legit claims to windows but are using a pirated version for a reason like the copy that came with the computer is crap?
Yeah, that's exactly what I used to do.
I think that if they actually go through with it, it could be dangerous. I mean, sure they lose money off pirating, but they also get loyal customers. The customers will continue to use Windows, and will demand it at work, and they'll insist that family members get it, etc. By how proliferated Windows is, legal and otherwise, I think that's proof that that works. I'd be willing to bet that they make as much money off pirating as they lose, just by gaining customer loyalty.
That being said, if they force people to buy Windows, then it'll be more likely that the local geek will set up the computer-moron with Linux, because the computer-moron wants a low-end computer that doesn't cost much. The computer-moron will learn to use Linux, and will probably never buy a Microsoft product. I doubt it'll be common, but it'll be much more common if Microsoft makes that change.
I don't think this decision will hit them hard, but I definitely think that their market share will slip as a result. And I don't think Vista is going to introduce any exciting new developments into the personal computer world, so I can't help but think that their market share will slip even more. Only the future will tell, though.